10:40 AM EDT, 03/27/2024 (MT Newswires) -- Coinbase (COIN) shares retreated Wednesday following a Bloomberg report saying that a federal judge had allowed a US Securities and Exchange Commission lawsuit against the company to proceed.

The report said the judge ruled that the cryptocurrency brokerage engages in "unregistered sale and offer of securities under US law." The judge also ruled that Coinbase operates as an exchange, a broker and clearing agency for purposes under federal securities laws, according to the report.

Coinbase shares were 1.5% lower in recent trading, paring a nearly 4% slide immediately after the decision.

Coinbase did not immediately respond to MT Newswires' request for comment.

Price: 262.89, Change: -3.92, Percent Change: -1.47